Insights
Technical Debt & ArchitectureMarch 16, 20263 min read

Cloud Cost Sprawl: A Diligence Red Flag Disguised as Growth

Infrastructure spend that grows in line with revenue tells a buyer the unit economics do not improve with scale.

Rising cloud bills look like traction on a chart. Under diligence they are examined per customer and per transaction, and the picture often changes.

What the analysis reveals

  • Environments provisioned for tests that ended long ago
  • Storage retained without a policy or a reason
  • Instances sized for a peak that occurs twice a year
  • Data transfer costs from a chatty internal architecture

Sub-linear cost growth is a strong signal in the buyer's model. Linear growth invites a margin assumption the seller will not like.

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